economy of scale

noun phrase

: a reduction in the cost of producing something (such as a car or a unit of electricity) brought about especially by increased size of production facilities
usually plural

Examples of economy of scale in a Sentence

Recent Examples on the Web
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Sharing components and collaborating on research will help cut costs and speed up development, as well as add efficiency in economy of scale once the vehicles go into production. ABC News, 31 Aug. 2026 The company aims to shift consumer behavior, encouraging annual laptop upgrades rather than long-term use, creating a predictable launch window and an economy of scale that rivals struggle to replicate. Ewan Spence, Forbes.com, 27 July 2026 This scale dwarfs European and North American national markets combined, creating an enormous economy of scale for manufacturers of black paints. New Atlas, 26 June 2026 Proponents say their economy of scale helps both with technological needs and with energy efficiency. Riley Robinson, The Christian Science Monitor, 20 Mar. 2025 The high cost of water service in Hialeah is due to multiple factors, including the system structure, economy of scale, franchise fees, bimonthly billing, and water and sewer pipe leaks. Verónica Egui Brito, Miami Herald, 24 July 2024 Starlink and other mega constellations rely on an economy of scale; their massive fleet is continually refreshed with new satellites to replace old ones that burn up in Earth’s atmosphere. Max Springer, Scientific American, 25 June 2024

Word History

First Known Use

1944, in the meaning defined above

Time Traveler
The first known use of economy of scale was in 1944

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Cite this Entry

“Economy of scale.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/economy%20of%20scale. Accessed 2 Sep. 2026.

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